Contradictions Linger About The Stimulus Plan

Noah Smith says something I’d been meaning to say about John Taylor’s recent work. Taylor actually has a pretty good point: it’s far from clear that the ARRA actually led to much of a rise in government spending, while the tax cuts that made up much of the stimulus were probably largely saved.

But Taylor then presents this as an argument against Keynesian economics — whereas it seems to be an argument that Obama wasn’t Keynesian enough.Read the rest of this article at The New York Times.